10 Feb 2020 07:00
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10 February 2020
Trans-Siberian Gold plc
("TSG", the "Company", or the "Group")
+1Moz JORC Mineral Resource Estimate - Rodnikova Gold Deposit
Trans-Siberian Gold plc (TSG.LN), a high grade gold producer in Russia, announces a JORC compliant Mineral Resource Estimate for the 100% owned Rodnikova Gold Deposit, located in Kamchatka, Far East Russia.
Highlights of Mineral Resource Estimate
·; Total Indicated & Inferred Resources of 6.3Mt at a grade of 5g/t gold, for total contained +1Moz of gold, of which:
o Indicated Mineral Resources of 3.1Mt at a grade of 5.3g/t gold, for contained 519,000oz gold
o Inferred Mineral Resources of 3.2Mt at a grade of 4.8g/t gold, for contained 491,100oz gold
·; Total Indicated & Inferred Resources of 6.3Mt, for total contained 7.4Moz of silver
·; Rodnikova Gold Deposit combines two sites: Rodnikovy and Vilyuchinsky. Vilyuchinsky is located 4 km north-west of Rodnikovy.
·; 75% of total contained gold resources at Rodnikovy
The JORC compliant Mineral Resource Estimate ('MRE') for the Rodnikova Gold Deposit was produced by SRK Consulting (Russia) Ltd for the Company's wholly owned subsidiary, CJSC Trevozhnoye Zarevo ("TZ") which holds a 25 year exploration licence over the Rodnikova Gold Deposit.
The MRE was developed in accordance with the recommendations and guidelines of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves as published by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (the JORC Code, 2012 Edition).
SRK's full report is available on the Company's website at: www.trans-siberiangold.com
Alexander Dorogov, Chief Executive Officer of TSG, commented:
"It is pleasing to confirm a 1million ounce gold Mineral Resource Estimate at Rodnikova. The JORC Mineral Resource Estimate validates previous reported estimates under the GKZ classification and also the value-created following its cost-effective acquisition last year.
We remain on track to deliver an initial scoping study in Q2 2020. This study will assist in de-risking the project by establishing the framework for understanding the economics of future mine development scenarios and will also provide guidance for near-term exploration programmes to maximise the delineation of further economic mineralisation".
Mineral Resource Estimate
The Mineral Resource Estimate, classified according to the guidelines of the JORC Code (2012), for the Rodnikova Gold Deposit as at 20 January 2020 is shown in the following table:
Table 1: Mineral Resource Estimate for Rodnikova Gold Deposit (planned for underground extraction) as at 20 January 2020
Classification |
| Tonnes (Mt) | Au (g/t) | Au (t) | Au ('000oz) | Ag (g/t) | Ag (t) | Ag (Moz) |
Rodnikovy |
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Indicated |
| 3.1 | 5.3 | 16.1 | 519 | 43.9 | 134.9 | 4.3 |
Inferred |
| 1.7 | 4.3 | 7.4 | 238 | 32.3 | 55.7 | 1.8 |
Vilyuchinsky |
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Inferred |
| 1.5 | 5.3 | 7.9 | 253 | 27.1 | 39.9 | 1.3 |
Total Indicated |
| 3.1 | 5.3 | 16.1 | 519 | 43.9 | 134.9 | 4.3 |
Total Inferred |
| 3.2 | 4.8 | 15.3 | 491 | 29.9 | 95.7 | 3.1 |
Notes:
1. Mineral Resources are reported in accordance with guidelines and provisions of the JORC Code.
2. Mineral Resources were estimated at a cut-off grade of 3.0 g/t within underground mining outlines.
3. The Competent Person for this report of Mineral Resources is Mr Robin Simpson, an employee of SRK Consulting (Russia) Ltd. Mr Simpson is a Member of the Australian Institute of Geoscientists (AIG), and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person.
Summary of Mineral Resource Estimate Report
Location
The Rodnikova Gold Deposit is located in the south-eastern part of the Kamchatka Peninsula, in the South Kamchatka ore region, in the Yelizovo administrative district of the Kamchatka Region. There is a 120km road from Petropavlovsk-Kamchatsky to the Rodnikova Gold Deposit, including 65km of asphalt road. The Rodnikova Gold Deposit is approximately 61 km from the Company's operating Asacha Gold Mine.
Previous Exploration
The main types of exploration work on the Rodnikova Gold Deposit and its flanks included reconnaissance exploration, diamond drilling (223 drill-holes for 47,377m), core sampling, development of two adit levels totalling 822 m, with a collection of channel and chip samples, excavation of ditches and trenches to trace vein continuity along the strike and channel sampling. The main exploration stages on the deposit were completed in the 1980-1990s. Additional drilling within Rodnikovy mineralised zone and at its flanks were undertaken as part of the 2005-2007 exploration program.
The main exploration reports, drawings and primary field documentation for the Rodnikova Gold Deposit are kept in the regional archives of the Ministry of Natural Resources. SRK is of the opinion that exploration works were generally performed at the level to meet the state standards of the Soviet Union and Russia, and these standards are appropriate for collecting information to be used for Mineral Resource estimation.
The database used to construct the resource model contains information on 223 drill-holes, 332 trenches, 440 clearings and 83 cross-cuts, 15,027 core samples and 12,060 channel samples.
Rodnikovy
Gold mineralisation at the Rodnikova deposit is mainly associated with hydrothermal-metasomatic formations.
The Rodnikovy vein zone is localised in a N-S trending disjunctive fault. The zone thickness is 50-120m, the estimated length is 3 km. It is represented by veins: 42, 43, 44, 52 and 53 which are accompanied by apophyses and numerous quartz veinlets. The main plane of the ore-controlling fault is composed of Vein 44 which is adjoined at various angles from the side of the hanging wall by the remaining veins that form the main branching structure of tensile fracturing.
The main veins are Veins 43 and 44 which contain 80% of the mineralisation of the Rodnikovy vein zone. The maximum thickness of the ore body is 23m and is observed on the 220m level. Gold grade ranges from tenths of a gram per ton to 90-130g/t, with most samples showing grades within a 4-70g/t range.
Mineralisation from the Rodnikova deposit is a typical quartz low-sulphidation gold and silver. Gold and associated silver are the only valuable ore components of significance. Ore is mostly represented by vein non-metallic minerals: quartz (42.5 - 75%), adularia (9.5 - 16%) and carbonate (5 - 28.6%). Diagnostic leach data shows that most of the gold in analysed ore (88.7%) is amenable to cyanidation (in the presence of a sorbent. Associated silver is mostly present in a cyanide-amenable form (82.2%).
Figure 1: Rodnikovy wireframe model
Vilyuchinsky
The Vilyuchinsky site is located in the north-western part of the ore field, 4 km from the Rodnikovy site, on the watershed of the Bystraya-Paratunka and Vilyucha rivers.
Two systems of ore-controlling faults (sub-meridional and north-eastern) were identified within the site. Of major importance is the system of the N-E trending disjunctive faults that form the Vilyuchinsky ore-bearing vein zone of 400-500m wide traced over some 3km. Productive mineralisation is mainly confined to shallow veins that form tensile fractures (Vein 9). Vein 9 has an average thickness of 2.9m, a strike length of 450m and a dip length of 90m. The average gold grade is 9.82g/t, silver grade is 67.83g/t. 80% of mineralisation at Vilyuchinsky is concentrated within Veins 9, Regina, 6 and 13.
Figure 2: Vilyuchinsky wireframe model
Figure 3: Block model coded by Mineral Resource classification (Rodnikovy looking West at 270°)
Next Steps
TZ plans to use the Mineral Resource Estimate as an input for a Scoping Study. The outcomes of this internally-produced study will inform a decision about whether or not further drilling and sampling is justified, in order to improve the level of confidence in the current Mineral Resource Estimate, and in particular to increase the portion of Indicated Mineral Resources (which could potentially convert to Reserves if a Pre-Feasibility Study is prepared).
SRK believes that mineral and material composition, as well as internal structure of gold mineralisation have been studied reasonably well during previous exploration campaigns and are mainly based on sampling results for trenches (longitudinal and transverse) and underground developments in the central part of the Rodnikovy site. In order to expand the Rodnikovy site's mineralisation potential, SRK recommends looking at options of exploring the northern extension of the zone with infill drilling.
The Company looks forward to publishing the Scoping Study and intended work programme in due course.
ENDS
Contacts |
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TSG |
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Stewart Dickson | +44 (0) 7799 694195 |
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Arden Partners plc |
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Paul Shackleton (Corporate Finance)Tim Dainton / Fraser Marshall (Equity Sales) | +44 (0) 207 614 5900 |
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Hudson Sandler (Financial PR) | +44 (0) 207 796 4133 |
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Charlie Jack / Katerina Parker / Elfreda Kent |
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About TSG
TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia. The Group also holds the licence for the development and exploration of the Rodnikova Gold Deposit, one of the largest gold fields in South Kamchatka.
Additional information is available from the Company's website: www.trans-siberiangold.com
Competent Person Review
The Mineral Resource Estimate was prepared by Mr. Robin Simpson, an employee of SRK Consulting (Russia) Ltd. Mr Simpson is a Member of the Australian Institute of Geoscientists (AIG), and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person.
The information in this release that relates to the Mineral Resource Estimate is based on, and fairly represents, information which has been compiled by Mr. Simpson.
Mr. Simpson has consented to the inclusion of the matters in this announcement based on the information in the form and context in which it appears.
Technical Glossary
"Au" | the chemical symbol of gold |
"Ag" | the chemical symbol of silver |
"cut-off grade" | the lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. May be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification.
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"g/t" | grams per tonne
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"Indicated mineral resource" | a part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed
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"Inferred mineral resource" | a part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.
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"JORC Code" | the code for reporting of the Australasian Joint Ore Reserves Committee, which is sponsored by the Australian mining industry and its professional organisations. The code is widely accepted as a standard for professional reporting purposes for reporting of mineral resources and ore reserves.
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"Measured mineral resource"
| A part of a Mineral Resource for which quantity, grade (or quality), densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and evaluation of the economic viability of the deposit.
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"Mineral Resource" | a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.
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"Mineralisation" | the process or processes by which a mineral is introduced into a rock, resulting in a valuable or potentially valuable deposit. It is a general term, incorporating various types; e.g., fissure filling, impregnation, and replacement.
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Market Abuse Regulations
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
Disclaimer
This announcement contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets, fluctuations in interest and/or exchange rates and metal prices; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements.